By Pete Najarian, co-founder of OptionMonsterHAMILTON, Bermuda ( TheStreet) -- Assured Guaranty ( AGO) spent most of June churning below $15, but activity turned bullish Wednesday amid speculation of a legal settlement. The mortgage insurer fought hard against a downdraft in the market Wednesday, and buyers stepped in to the August 14 calls. They initially snapped up blocks for $1.45 to $1.50. The stock drifted down along with the rest of the market late in the day, but the call activity showed up again on optionMONSTER's Heat Seeker system, this time for $1.35. By the end of the session, volume in the August 14 calls stood at 8,156, more than 2.5 times the average daily call volume at all strikes combined. The stock ended the day up 0.15% to $13.27. The bullishness is nothing new for Assured Guaranty, which has seen about twice as many calls than puts trade on average over the last month. Wednesday the catalyst was a note from Piper Jaffray saying that the company will reach a settlement in a dispute with Deutsche Bank ( DB). Financials have certainly been a killing zone of late, so we're not feeling any need to rush in. But it's on our watch list. At the time of publication, Najarian had no positions in the stocks mentioned.